Industry 4.0 and its Impact on Reshoring Decisions of German Manufacturing Enterprises

Industry 4.0, the German initiative for the future of German industry, aims for multiple benefits. Among those are reshoring, i.e. bringing back production to Germany or turning to German suppliers. Owing to the lack of prior academic research in this field, we investigate this matter using an empirical approach. We obtain data from an own sample, encompassing 50 German industrial enterprises with global sourcing and production activities. Our study adds to the current body of knowledge, as empirical research in the field of reshoring is rare, despite presenting huge economic implications. Especially in the context of Industry 4.0, no prior research exists. Our study reveals that the general estimation for the importance of reshoring of Industry 4.0 remains questionable among our sample. However, clear reasons for reshoring can be deduced, especially differentiating between reshoring of own production in Germany, setting up new production in Germany and deciding for German suppliers.